House of Representatives has taken a major step toward establishing a Fintech Regulatory Commission, as a bill proposing its creation passed the second reading during Tuesday’s plenary session.
Gatekeepers News reports that the proposed legislation, sponsored by Fuad Laguda, a member of All Progressives Congress (APC) representing Surulere I Federal Constituency of Lagos State, seeks to provide a formal structure for overseeing Nigeria’s fast-expanding financial technology sector.
While presenting the bill, Laguda explained that the commission would be responsible for supervising and regulating the fintech industry to ensure transparency, innovation, and financial security.
He said, “The need for this regulation has grown exponentially in recent years, with millions of Nigerians relying on digital payment platforms, mobile money services, and other fintech products for their financial transactions.”
“However, the lack of a clear regulatory framework has led to concern about commercial protection, financial stability, and the prevention of financial crimes.”
Laguda added that the commission would establish a defined regulatory system for fintech operators, ensuring compliance with industry standards and protecting consumers from unfair or unsafe practices.
The legislator said the body would also promote innovation while safeguarding the financial ecosystem from systemic risks.
The surge in digital financial activities has already prompted various regulatory agencies including Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and National Information Technology Development Agency (NITDA) to explore new frameworks for the evolving fintech landscape.
In October 2024, the SEC announced its commitment to strengthening oversight of fintech operations to prevent fund mismanagement and align companies with existing financial regulations.
Emomotimi Agama, director-general of the SEC, emphasised that building a balanced regulatory environment that encourages innovation while maintaining accountability is key to advancing Nigeria’s digital financial transformation.
